City Council Minutes 2017 08 08 SP

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City Council Meeting Minutes August 8, 2017 Page 2 of 13 Revenue Update, Five -Year Capital Improvements Plan Update and Fund Financial Forecasts Revenue Update New revenue estimates for 2017 and projections for 2018 have been derived from. • The original biennial revenue budget adopted by Council November 15, 2016; • Updated with new building -related revenue projections from the Planning & Building Department, and • Updated with 2017 trend analysis prepared for the Finance Committee. • More work will be completed prior to the September 26 budget presentation to Council The Projection Dashboard noted an increase of tax revenue over 2016 Current sales tax revenue is trending up even without audit revenue. Building related revenue provided by the Planning Department show normal variations and fluctuations Planning and Building Safety Director Zuccaro stated the projections for revenue in building and planning are always dependent on projects actually happening so they were conservative with the projections Finance Director Watson noted the projected 44% increase in property tax revenues; this combination includes the property tax on the new recreation center bonds as well as the final mill levy on the library bonds. Council member Maloney asked without those bonds, what the net effect on property tax would be just based on the valuations of property increasing Watson said the projection is a 5% increase in valuation. Council member Loo asked if the sales tax has not increased as the chart reflected a 0% increase. Watson noted to be conservative, projection is to stay even because audit revenue is not included. Mayor Pro Tem Lipton noted this is extremely conservative He did not want to be so conservative as to not be realistic. He asked if property tax rates were being captured because of the increase in assessed value He wondered if there was a way to offset the valuation increase residents are feeling in their property tax Council member Stolzmann noted the Finance Committee is looking at this issue in the next month Mayor Pro Tem Lipton asked if the other taxing entities were doing anything to offset the impact on residents. Council member Stolzmann didn't feel the other taxing entities would do anything to offset it and cautioned if the City lowered their mill levy, they would have to be prepared to raise it in future years if needed Council member Keany asked about giving a reduction on water bills or something similar to not affect the mill levy long term.